Income allocation between 3 states

I am a permanent resident of WA but have nonresident (or part-year) resident for CA and NJ. I'm trying to figure out how to input the tax correctly so that I don't get double taxed but also pay the correct amount...

WA: Simple since there is no income tax
NJ: I entered days I lived/worked there and TT calculated it for me. When confirming taxable state wages, it shows both CA and NJ with the wage amounts from my W2. Do I remove the CA wages shown in my W2? (If I do not, it's showing that the total amount that I made is CA+NJ which is incorrect.)
CA: It is asking me "How much $XX from W2 did you earn in California?" Do I enter the number from my W2 or do I do an allocation based on how long I was there?

2352

Expert Alumni

Mar 20, 2025 8:50:06 PM

For your NJ tax return, you will remove the CA wages. For your CA tax return, you will allocate your income based on the income that you made when you were in CA.

Review the TurboTax article Multiple States - Figuring What's Owed When You Live and Work in More Than One State for additional information.

Also, review How do I allocate (split) income for a part-year state return? for further explanation.

New Member

Mar 20, 2025 8:56:37 PM

Thank you! So for CA income allocation, it is not based on what is shown in the W2 correct?

Expert Alumni

Mar 24, 2025 8:58:04 AM

Correct. You need to allocate the income based on how much income you earned while living/working in CA versus the other states.

For ways to do that, please check Earned Income allocation.

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Income allocation between 3 states